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Market Pulse: Italian yields fall after auction

Sunday, January 29, 2012 - 03:25

Jan. 30 - Italy's 10 year borrowing costs fall as Rome passes a key test of demand for longer dated paper.

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Actually sell seven and a half billion euros of bonds at auction near the top of its target range volumes about about 6%. I'm relentless marketing pressure on Portugal bond yields and CBS -- the highest ever that this is today's market pulse. Paul well all the of course against the backdrop of the EU summit in Brussels the first of -- up with me to discuss these market news is on -- cost up fixed income correspondent you know Reuters and up thanks for joining us. Sold almost sold almost threw eight billion or five continue to pick up is there any evidence that banks use some of the Nazis. Of cheap ECB -- To buy those funds. Yes it's it's hard to answer that out right I mean people are -- saying that -- Terrell has made for favorable backdrops to bond auctions. Especially push -- dated bonds and in this case Italy's old five and ten year. But but yet -- it definitely helped. The backdrop of -- which you know Italy sold its -- And it's clear seems to be trillion to 6% month coming what you just telling you I'm going by the little off of the colon and -- -- But yeah I mean today it's today there's definitely. You know us a nice rise to the yields and down. Given that big rally we've seen an Italian bonds and in recent. Two days and weeks because of the Ontario money. People are saying there is a lot of concession built in tune to the current option. So I -- we have a lot of risks you know there's a Greek yes I tell -- ongoing -- -- summit so I guess it's anyone's guess whether we go up for down from there. Well you mentioned the three PSI talks and that's the focus of the market but as I mentioned and ensure that Portugal under real pressure on yields and CBS are rising. Other markets trading as if a second bailout package for Portugal is not a inevitable. Yeah I think investors are increasingly pressing and that that possibility and I was talking to someone this morning who said. You know that he thought in the second half of this year we could definitely see Portugal's asking for a second bailout and that the key question then would be whether or not days you know PSI would be there would there would be at his side involves and a and so yeah I think I think Portugal's under severe pressure at the mine. But met Macklin -- with Telus believes that the geek PSI is unique but some publicity. People and -- would be paying very close attention that. Yes -- I think you know I mean the perception market is you know there's no reason my political wouldn't wanna do the same. And you know at at at these levels basically they might struggled plant and they won't be able to come back to the market makes sense that this looking pretty bad. It's -- -- -- thank you very much. Well those euros on that what is once again -- stocks lower across Europe. Banks other big decliners underperforming the broader market more than 321. That is still huge uncertainty over the PP SI talks on banks could take a loss of up to 70% on the deep bond holdings. On the dole did -- in leaders insist Kris has a unique case many wonder if this will set precedents -- debt restructuring and the future. What was today's market pulse stations inside at a twelve GMT a big day for your daily fix of market pulse and at 15100 GMT today. Analysis of the ECB's latest bond buying thing goes. With Chris Stewart -- -- Daiwa capital markets. I didn't even this influx of.

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Market Pulse: Italian yields fall after auction

Sunday, January 29, 2012 - 03:25